How do they make money? In the Indianapolis area, all Shell stations are at least 10-12 cents more per gallon than any other station. Even ones right next to other pumps.
Now, from what I’ve heard, Shell has a unique pay at the pump system that detects a radio signal coming from your keychain if you place it against a scanner. This doesn’t seem worth it to me.
What’s the deal? Anyone have the skinny?
People are lazy and they’d rather just stop at the Shell station than exert unnecessary effort turning the wheel to go accross the street.
Oh, no, that’s not it. Its really funny, you see, because when there’s an intersection with 2-4 stations, and one of them is a Shell, all of them but the Shells will be really busy. Maybe its a “you won’t have to wait for a pump” gimmick. And by “gimmick”, I mean “bad idea”.
Can’t be good for business. But there’s a bunch of 'em.
** Conner ** are you perhaps confusing Shell with Mobile who DOES have a gizmo that you can wave by the pump and it “reads” your credit card???
Nope. Shell also has little TV monitors to watch, but I can’t imagine that would be the deciding factor to get gouged at the pump.
By the way, its Connor.
To address your original question, Connor: Brand loyalty with gasoline is ridiculously high, because, through advertising, companies can make it seem like negligence if you aren’t using their gasoline. And then there’s the whole octane craziness. Try telling someone that’s filled up with 93 octance all their life that “Regular” won’t be any worse for their car. Stand back.
I use Shell gas even if it’s a couple pennies more, but that’s because I have a Shell Credit Card and I can track my gas expenses simpler this way. I have subsequently been sent Amoco and BP cards, however, so I am more likely to use either of the three. If Exxon and Sunoco (or anyone else for that matter) wanted to send me a card, I’d use them too.
Yer pal,
Satan - Commissioner, The Teeming Minions
I HAVE BEEN SMOKE-FREE FOR:
Six months, one day, 13 hours, 44 minutes and 44 seconds.
7382 cigarettes not smoked, saving $922.86.
Extra life with Drain Bead: 3 weeks, 4 days, 15 hours, 10 minutes.
Satan, understanding you’re on the East Coast may be different, as the gas is so much more. Is Shell just a few cents more spendy, or is it 12? Would that make a difference for you? 2 or 3 cents, and I think I would go to Shell for both the convenience of the neat little radio card, the CNN TVs, and the short lines. But not for 12. What about you?
At the Texaco near my apartment they still have Full Service, and I think it’s $1.90 for Regular. Most gas stations here (Houston) let you pay at the pump with credit card, and you just swipe and press two buttons. I don’t see why waving wands is so big of an advantage. I would like some TVs, though … I find it amazing that it took this long for someone to take advantage of those five minutes when consumers are just staring off into space while filling their tanks. Frankly, I’m surprised they let you watch CNN, I figured they’d put on some infomercial and make some money off of it.
WAG: Shell has a credit card that gives 5% back when used to buy Shell gas (actually, it gives the 5% back as credit for future gas purchases). The extra .10 or .12 per gallon probably compensates for this.
My experience has been that in certain places, Shell is much higher, in others (such as on Rt. 1 (?) in NJ) the price is comparable to others, making use of the credit card a real deal.
Good thing you reference the Indy market… it is easy to check. Local TV station WTHR tracks local prices. I checked in my neighborhood, and found that Shell in Carmel was $1.52 (regular 87 octane), in Westfield $1.49, and in Fishers $1.47. Neighboring Amoco and Marathon stations were $1.49. The lowest I could find was a Speedway and Crystal Flash at $1.38.
So, yes it is $0.14 difference from the “discount” stations, but within ± 2 to 3 cents with other major chains.
On the east side of Cleveland, Shell is competitive. In my particular township, the Shell is always the same price as one BP and often lower than the other BP. We had a Marathon that would go a penny higher or lower than the others, but never for more than a day at a time. We had an Amoco that was always the same as the Shell and BP, but when BP swallowed Amoco, they jumped to Shell (giving us two Shell’s and two BP’s(!?)), but their prices stayed locked to the other stations’.
Just a thought…do you think CNN paid anything to be the pump station?
Another thought comes to mind.
Is it possible that Shell has contracts with city owned vehicles or the like in your area?
The fuzz in minneapolis all cater Super America’s because of various agreements between the company and the city. No surprise that the prices tend to be higher there than other filling stations. No surpise they run out of pastries by nine in the morning either.
Another note. I recall studying the advertising and marketing strategies of gas stations in my early years of college. If I remember correctly, and that’s a bit of a stretch, I seem to remember that gas companies were the predecesors of major credit cards.
That is, they pushed their cards like mad to the public because that made it easier for the companies to gain consumer loyalty in an otherwise transitory business.
I just got a Shell credit card. The card wil advance me $200.00 in cash at any Shell station. They also sent me a check for $200.00 to be used anyway I want. I’m not going to use it, but it’s nice to know its there.
Yes, this relates to Shell. Very much so. Trust me.
Check this out. It’s my wallpaper. I use a larger size, but it is the same thing. No, that ain’t my site.
http://www.chickenhead.com/features/desktops/hellion640.html
I use my Shell Mastercard all the time… at the Union station! The Union station I patronize is usually a few cents less than other station, and often a penny or two less than Arco. I think I get a 1% gas refund on my Shell card whenever I use it. I’ll have to see what the nearby Shell station charges and figure out which is cheaper: the more expensive Shell gas with a 5% refund, or the less expensive Union gas with a 1% refund.